News Update
Feb. 9, 2011

Blach to Cow-Calf Producers: “The Payday Is Just Beginning”

“We’re going to see some real profitability over the next several years,” Cattle-Fax’s Randy Blach told cow-calf producers in attendance during the popular Cattle-Fax Annual Outlook seminar presented during the Cattle Industry Convention Feb. 4 in Denver.

Specifically, Blach told cow-calf producers, “The payday is just beginning.” He also noted that stockers and packers have experienced good prices during the past year and he anticipates that to continue. Cattle-Fax projected that prices on all classes of cattle will be record high in 2011 and 2012.

Blach credited the favorable conditions to supply and demand, saying, “The supply side of this business remains very bullish. It’s very, very positive.”

“A year ago we said if demand was steady our markets would be high," he added. "We needed exports to improve and people going to restaurants again. We’ve seen all those things happen. We had nearly a 20% improvement in exports last year and that was one of the main drivers in the market.”

Specifically, Blach noted that the uptick in demand —particularly from international consumers — has been responsible for a $100-per-head improvement in prices. Along with that, hide and offal value — again mostly via exports — added $40 to the value of cattle in 2010.

Blach did note that today’s marketplace is one that is different than the industry has ever seen — and it is very much influenced by global activity. His advice to the cattle sector was to find ways to adapt and keep up with the changes.

“Adapting to this new environment is one of the things we are all challenged with. You have to have an open mind. And, you have to think five to 10 years down the road. Volatility is here,” he stated.

What do CattleFax analysts anticipate for 2011? Here are highlights from their outlook:

Cattle Supplies

• Total cattle numbers are down 1.4% for 2011 and another 1%-1.5% decline is expected by 2012.
• Reduced slaughter levels of fed steers, heifers and cows are expected to result in a 373 million pound (-1.4%) reduction in beef production despite a moderate increase in average carcass weights.
• Reduced beef production and increased exports are expected to drive 2011 per capita net beef supplies lower for the fifth consecutive year.

Beef Demand

• Domestic beef demand is expected to be steady to slightly better during the next two years.
• Higher fed-cattle prices will result in higher retail prices and could influence menu prices.
• Retail beef prices are expected to be less competitive compared to pork and especially chicken in 2011.

Cattle and Beef Prices

• Record-high prices are forecasted for all classes of cattle in 2011 with continued increases in 2012.
• Fed-cattle values are expected to average near $103 per hundredweight (cwt.) in 2011 with higher prices again in 2012.
• Feeder-cattle values are projected to average near $118 per cwt. and calf values are projected near $138 per cwt.
• Cull cow values will also experience an increase, averaging near $65 per cwt.

Global Picture

• Many global economies are recovering more quickly than the U.S., with global beef demand rebounding. Beef exports are expected to increase 8% in 2011 and continue to rise in 2012.
• Expanded market access to Japan and re-opening China to U.S. beef exports would be very supportive to wholesale beef and cattle values.

— by Kindra Gordon for Angus Productions Inc.’s www.4cattlemen.com coverage
 of the 2011 Cattle Industry Convention and NCBA Trade Show.

K-State’s Cattlemen’s Day Set for March 4 in Manhattan

The new Flint Hills Smoke Management Plan, a beef cattle outlook and other topics pertinent to cattle producers will highlight Kansas State University’s (K-State’s) Cattlemen’s Day, scheduled for Friday, March 4, in Manhattan.

The day begins with registration and refreshments, a commercial trade show and educational exhibits at 8 a.m. in Weber Hall.

The program begins at 10 a.m. The schedule includes:

• The Flint Hills Smoke Management Plan — introduction and background, regulations and expected results, and an expert panel and group discussion;
• Beef Cattle Outlook;
• Lunch;
• Factors Influencing Beef Quality;
• DNA Technologies for Seedstock Producers; and
• Controlling Sericea and Other Invasive Plants in Native Grasslands.

In addition, afternoon open house and presentation opportunities will be available at 1:30 p.m. at different sites, including:

• At the Kansas Artificial Breeding Service Unit (KABSU), 3171 Tuttle Creek Blvd., Manhattan, the presentations will include an overview of KABSU services and testing for trichomonmiasis in herd sires.
• At the Beef Cattle Research Center, 3115 College Ave., Manhattan, the presentations will include using postmortem examination to improve herd management; does pain management pay?; the microscopic world of the rumen; and steam-flaking.

The 34th Annual Legacy Sale begins at 3:30 p.m. at K-State’s Purebred Beef Teaching Center, and includes 70 Angus, Hereford and Simmental bulls, five show heifer prospects, 40 bred females and six registered Quarter horses.

Continuing education credit hours are available for animal scientists and veterinarians attending Cattlemen’s Day. Forms will be available at the registration check-in desk.
More information and registration for K-State’s Cattlemen’s Day is available at http://www.asi.ksu.edu/cattlemensday.

Morning refreshments provided by New Generations Feeds Inc. and lunch sponsored by U.S. Premium Beef (USPB) will be included in the registration fee. The fee is $15 per person if received by Feb. 25, or $25 after that date.

Cattlemen’s Day will be preceded Thursday evening, March 3, by the 41st Annual Stockmen’s Dinner at the Clarion Hotel in Manhattan. Virgil Huseman will be honored as the Stockman of the Year. Registration for the dinner is available online at http://www.found.ksu.edu/lmic or call Melissa Geisler at 785-532-7522 or 1-800-432-1578.

— Release by K-State Research and Extension.

Original Grazing School for Novice Ranchers Accepting Students

Dealing with rising fertilizer and feed prices, new opportunities in wildlife and pond management — all are new topics of the state’s original “grazing school for novice ranchers.”

Set March 29-31 at the Texas AgriLife Research and Extension Center at Overton, Texas, the Pasture and Livestock Management Workshop has operated under different names since the first classes were conducted in the spring of 2001, said Monte Rouquette, Texas AgriLife Research forage scientist. But the basic thrust of the instruction has remained the same.

“We originally designed the course for what we saw then as an emerging new demographic, newcomers to farming and ranching,” Rouquette said.

Typically, after years of working in an urban area, many baby boomers were either returning to family property or buying land as a retreat from city life, according to Rouquette. Once back in the country, they find just maintaining a large acreage and generating income from it is a daunting learning experience. Many had to start learning the elementary aspects of ranching and farming, as compared to ranchers and farmers who grew up in a rural setting.

“And that’s where we start new students out,” Rouquette said, “at the grass roots.”

Though the grazing school was originally designed primarily for the novice, attendance soon expanded beyond the region, attracting students nationwide and internationally, Rouquette said. Ten years later, the demographic trend shows no signs of slowing down. And some graduates have found the intensive course so valuable they returned a second — or even a third or fourth year — to take it again.

“We’ve heard again and again from students that what they've learned in the first morning saved them many times over the cost of the course,” said Greg Clary, Texas AgriLife Extension Service economist and one of the course instructors.

Registration for the two-and-a-half-day course is $350 per person. The fee includes breakfast and break refreshments along with two noon and evening barbecue and ribeye steak meals.

Enrollment is limited to 60 individuals. The limitation on class size allows workshop attendees to have plenty of time to visit one-on-one with AgriLife Research and AgriLife Extension faculty to discuss specific aspects of their operations, according to Rouquette.

Attendees also will earn three continuing education units toward renewal or obtainment of their private pesticide applicators licenses. Texas Department of Agriculture licensing is required to purchase and use restricted-use pesticides on pasture forages and other crops.

“For those who accompany a friend or spouse but do not participate in the workshop, the evening meals are available at a reasonable cost,” Rouquette said.

All instructors are scientists and educators with AgriLife Research, AgriLife Extension and Texas A&M University. All hold doctoral degrees related to their area of instruction.

Workshop instruction is divided between the classroom and the field. In-field demonstrations cover all aspects of running a beef operation, including establishing and maintaining high-quality forages, calibrating sprayers, taking soil samples, castrating and vaccinating cattle, and dehorning calves, Rouquette said.

Also included will be training on writing a business plan for a ranch; keeping proper records; choosing the appropriate forage species for different soils; understanding soil fertility; establishing forage systems that minimize winter feeding costs; setting correct stocking rates; choosing the right cattle breeds; promoting good animal health; and marketing cattle.

New material on wildlife will include managing small ponds and lakes for fish production, and reducing damage done by feral hogs.

A full agenda can be found at http://overton.tamu.edu/beef_cattle/grazing_school/grazingschool.php.

To register or for more information, contact Jennifer Lloyd at 903-834-6191 or jllloyd@ag.tamu.edu. Lloyd will have information on class openings, local accommodations and driving directions to the center, Rouquette said.

— News release by Robert Burns, Texas AgriLife Extension.

National FFA Organization Seeks Young Farmers

The National FFA Organization is now accepting applications for its 2011 New Century Farmer conference.

The exclusive, highly competitive conference is open to college of agriculture students who intend to pursue careers in production agriculture after college. Those selected to attend the conference will be among the first in the nation to learn about the latest technological developments in the agriculture industry, and will receive business management advice from top industry leaders. The program will also help students begin to develop a nationwide network of industry professionals and colleagues to whom they can turn for support when they begin their own operations. 

The conference is free to those students who are selected and will take place July 24-30 in Johnstown, Iowa. The deadline for applications is March 15. Only 50 students will be selected to participate. Potential participants can learn more about the program and download an application at www.ffa.org/collegiate. 

The conference is sponsored by Pioneer Hi-Bred, a DuPont business; Rabo AgriFinance; Case IH; and CSX Cooperation; as a special project of the National FFA Foundation. Successful Farming is a media partner of the conference.

— News release by the National FFA Organization.

— Compiled by Shauna Rose Hermel, editor, Angus Productions Inc.